Calculate variable unit costs and total annual costs, Macroeconomics

Assignment Help:

How do you calculate variable unit costs and total annual costs?

Ans) Annual units sold, 1000. Raw materials yearly cost 650. Building rent yearly cost 9000. If sales volume enhanced to 6000 units and 8000 units, what is the total year cost and unit cost for fixed variable?

Cost per unit of raw material=650/1000= 0.65

Fixed cost (Rent) =9000

Fixed cost per unit= 9000/1000= 9.00

If the sales volume enhances to 6000 units, then total cost= 12900 and cost per unit = 2.150

Variable cost+ fixed cost= (0.65*6000) + 9000= 12900 / 6000= 2.15

If the sales volume enhances to 8000 units, then total cost= 14200 and cost per unit = 1.775

(0.65*8000) + 9000= 14200 / 8000 = 1.775

 


Related Discussions:- Calculate variable unit costs and total annual costs

Describe the short run effect of the supply shock, Question : The long-...

Question : The long-run position of an economy is described by the quantity theory of money: M/P = L (Y, r) Where M: nominal money stock; P: price level; Y: real income a

Faced trade-offs, Provide an example of a decision in which you faced trade...

Provide an example of a decision in which you faced trade-offs, considered opportunity costs and evaluated the options by comparing the marginal benefits and the marginal costs ass

No relationship between the two at other times, Do some research and find t...

Do some research and find the inflation rate and the level of unemployment in the U.S. economy for the past 40 years. Is there a relationship between the two? If so, what type of r

Calculate the production with antitrust laws, The following Table summarize...

The following Table summarizes the profits of two firms as a function of their capacity investments levels (you can also interpret these levels as the quantities they produce):

What is the value of the swap in terms of both bonds and fra, Suppose that ...

Suppose that the yield curve is flat at 5% per annum with continuous compounding. A swap with a notional principal of $100 million in which 6% is received and six-month LIBOR is pa

The monetary system.., bank A has a leverage ratio of 10 while bank B has a...

bank A has a leverage ratio of 10 while bank B has a leverage ratio of 20 similar losses on bank loans at the two banks cause the value of their assets to fall by 7 percent. Which

Nominal interest rate and expected inflation, Q. Nominal interest rate and ...

Q. Nominal interest rate and expected inflation? When we have inflation, we can't, of course, presume that expected inflation is zero. So real interest rate will no longer be e

What do learn by study of the supply curve concepts, What do learn by study...

What do learn by study the supply curve concepts? a. The relationship in between quantity of inputs and output b. Why production is frequently subject to reducing  returns

What do you mean by patulin, Q. What do you mean by Patulin? It is a to...

Q. What do you mean by Patulin? It is a toxic and antibiotic metabolite produced by several species of Penicillin, Aspergillus and Paeciliomyces but the most important in the c

Money supply and monetary policy, Money Supply and Monetary Policy   All...

Money Supply and Monetary Policy   All modern societies use money as the medium of exchange. Since money can be exchanged for goods and services it also becomes a financial asse

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd